Biomass Based 10 MW Power Plant

“We don’t transact, we

cooperate”

Vayam Technologies Limited

Thapar House, 124 Janpath,

Biomass based 10 MW Power Project 1

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New Delhi – 110001, INDIA
www.vayamtech.com

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 CONTENTS
CONTENTS

PTG
PTGCONSULTANCY
CONSULTANCYLTD.
LTD.
TOPIC PAGE

1. PREFACE 3

2. PROJECT OBJECTIVES 4

3. OVERVIEW OF BIOMASS ENERGY 5

4. BIOMASS BASED POWER POTENTIAL IN INDIA 6

5. TECHNOLOGY 9

6. FINANCIAL INCENTIVES AVAILABLE 12

7. PLANT ECONOMICS 13

8. IMPLEMENTATION SCHEDULE 14

9. FINANCIAL STATEMENTS

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 PREFACE
PREFACE

This project profile has been prepared on the basis of information available with
Vayam Technologies Ltd. The intention here is to provide preliminary information
to the prospective entrepreneur. Prior to making a firm decision for investment in
the project, the entrepreneur must verify the various feasibility aspects along with
the address for the procurement of the plant & machinery and raw materials
independently. The information supplied in this report is obtained from the reliable
sources but it is not guaranteed. Claims for in-comprehensives of the project
report will not be entertained and no legal action in this regard would be
entertained in any case. In case of any dispute the courts in Delhi shall have an
extraordinary jurisdiction. Any matter relating to our standard points covered in the
report may be modified any time.

VAYAM TECHNOLOGIES LTD.

NEW DELHI

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 PROJECTS
PROJECTSOBJECTIVES
OBJECTIVES

The main objective of the project is to set up a Biomass based 10 MW Power

Plant. The plant will work on biomass like cotton stalk, rice husk, sugar cane
bagasse, etc. for the production of electricity.

 It has been decided by promoters to set up a power plant of 10 MW capacity

based on biomass.
 The company will require plot of 5 acres for setting up of the proposed plant.
 The company has already started work on project development.
 At the site there will not be any problem in getting raw material.
 The power for the project will be easily available.

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 OVERVIEW
OVERVIEWOF
OFBIOMASS
BIOMASSENERGY
ENERGY

Biomass is defined as all plant and animal matter that can be used to produce
electricity, heat or fuel for transportation. Biomass has been one of the main
energy sources for the mankind ever since the dawn of civilization; Biomass is
also capable of providing firm energy. Estimates have indicated that 15%–50% of
the world’s primary energy use could come from biomass by the year 2050.
Currently, about 11% of the world’s primary energy is estimated to be met with
biomass. For India, biomass has always been an important energy source.

Although the energy scenario in India today indicates a growing dependence on

the conventional forms of energy, about 32% of the total primary energy use in the
country is still derived from biomass and more than 70% of the country’s
population depends upon it for its energy needs.

Even though biomass generate about the same amount of carbon dioxide as fossil
fuels, but the carbon dioxide gets cyclically consumed by new plants grown for
energy. Thus, the net carbon dioxide emission into the environment is zero. These
energy crops, such as fast-growing trees and grasses, are called biomass
feedstock. For country like India, predominant in agriculture, this can generate
rural employment and improve local economy.

Ancillary Benefits of Biomass over Coal

16
Emmission (ton/GWh)

13.34
14
12
10
8 6.11
6 3.89
4 2.62
0.46 1.23
2
0
SO2 NOx Participate (with
Static
Participation)

Coal Biomass Power

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 BIOMASS
BIOMASSBASED
BASEDPOWER
POWERPOTENTIAL
POTENTIALIN
ININDIA
INDIA

RENEWABLE ENERGY CONTRIBUTION TO WORLD

ENERGY
( In
million TOE)
2001 2010 2020 2030 2040
World Primary Energy 100038.3 10549 11425 12352 13310
Consumption (IIASA)
Biomass 222.7 266 309 341 358
Small Hydro 9.5 19 49 106 169
Wind 4.7 44 266 542 688
PV 0.2 2 24 221 764
Solar Thermal 4.1 15 66 244 480
Solar Thermal electricity 0.1 0.4 3 16 68
Geothermal 43.2 86 166 333 493
Marine (Tidal/wave ocean) 0.05 0.1 0.4 3 20
TOTAL RES 1364.5 1764.5 2694.4 4289 6351
RES Contribution 13.6% 16.6% 23.6% 34.7% 47.7%
Biomass power has to be the main constituent of R.E. in declining
fossil fuel scenario

RENEWABLE POWER POTENTIAL AND ACHIEVEMENTS IN

INDIA
(MW)
SOURCES/SYSTEMS POTENTIAL CUM. INSTALLED CAPACITY
(As on 31.3.08)
Grid Power
Wind power 45000 7939
Biomass Power 18000 669
Bagasse Cogeneration 5000 720
Biomass/Cogeneration 59
(Non-bagasse)
Small Hydro (up to 25 15000 2062
MW)
Waste to Energy 2700
 MSW (1700) 36
 Industrial Waste (1000) 20
Solar Photovoltaic 20 MW/sq. km. 3
power
Total 11508*
Distributed Power 90
* about 8% of total installed capacity

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Biomass as a resource can be distinctly exploited in one of the three ways: Bio-
fuels for transportation, Bio-power for electricity generation and bio-refinery
products. At present there is worldwide-rekindled interest in biomass energy.

Biomass power generation in India is an industry that attracts investments of over

Rs 600 crore every year. The current availability of biomass in India is estimated
at about 500 millions metric tones per year. Studies sponsored by the Ministry has
estimated surplus biomass availability at about 120 – 150 million metric tones per
annum covering agricultural and forestry residues corresponding to a potential of
about 16,000 MW. This apart, about 5,000 MW additional power could be
generated through bagasse based cogeneration in the country’s 550 Sugar mills,
if these sugar mills were to adopt technically and economically optimal levels of
cogeneration for extracting power from the bagasse produced by them. The three
main technologies being promoted by the MNRE for productive utilization of
biomass are bagasse-based cogeneration in sugar mills, biomass power
generation, and biomass gasification for thermal and electrical applications.

CUMULATIVE RENEWABLE ENERGY INSTALLED CAPACITY

(AS ON MARCH 31ST,2007)-(SOURCE MNRE)
SOURCE-GRID CONNECTED GENERATION INSTALLED
CAPACITY MW
Bio Power ( agro residues) 525
Wind 7092
Small Hydro (up to 25 MW) 1976
Co-generation Baggase 616
Waste to energy 44
Total Grid connected 10251
SOURCE- NON GRID CONNECTED ENERGY GENERATION
Solar 2.92
Bio Power/cogeneration (Non- baggase0 46
Biomass Gasifier 87
Waste to energy 20
Total 155

ESTIMATED POTENTIAL FOR POWER GENERATION FROM RENEWABLE

ENERGY SOURCES BY THE YEAR 2032 (SOURCE MNRE)
Sources/Systems Estimated Potentials MW
Wind 45000
Bio Power ( Agro residues) 61000
Co-generation Baggase 5000
Small Hydro (upto 25 MW) 15000
Solar Photovoltaic 50000
Waste to energy 7000
TOTAL 183000

Biomass Resource Availability

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• India has 141 million hectares of arable land and agricultural/horticultural output
is close to 800 million tons, which generates nearly 700 million tons of waste.
Hence, even after deducting approximately 450 million tons of waste which is used
as fodder, 250 million tons of surplus agricultural waste could be used for biomass
Power Generation.

• Likewise, India has close to 250 million livestock which produce nearly 1200
million tons of animal waste. Even after deducting the waste used by rural
households as cooking fuel (Dung Cake/small Biogas Plants), there is a significant
amount of cow dung available to be used as feed stock for large (say 12,500
cum/day) high efficiency multi biomass feed stock Biogas Plants.

• So total potential for 20,000 MW of Biomass Power.

Biomass Supply Chain

A viable solution is to allot a Taluka (or Tehsil / Block) to a Single Biomass
Power Plant Developer. This would not only help in avoiding unhealthy
competition between Biomass Power Plant Developers but also encourage the
Biomass Power Plant Developer to
• Make more accurate assessment of Biomass Resource availability (gross
generation – current applications).
• Interface with farmers and establish sustainable biomass supply chain (through
local entrepreneurs).
• Evaluate options for energy crops cultivation in fallow lands or short cycle
alternative crops (which does not impact food chain).

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 TECHNOLOGY
TECHNOLOGY

Biomass-based Power Generation

India produces a huge quantity of biomass material in its agricultural, agro

industrial, and forestry operations. According to some estimates, over 500 million
tonnes of agricultural and agro-industrial residue alone is generated every year.
This quantity, in terms of heat content, is equivalent to about 175 million tonnes of
oil. A portion of these materials is used for fodder and fuel in the rural economy.
However, studies have indicated that at least 150–200 million tonnes of this
biomass material does not find much productive use, and can be made available
for alternative uses at an economical cost. These materials include a variety of
husks and straws. This quantity of biomass is sufficient to generate 15000–25000
MW of electrical power at typically prevalent plant load factors. In addition,
electricity can also be generated from biomass grown on wastelands, road and rail
trackside plantations, etc. The quantum of electricity that can be produced from
such biomass has been estimated to be in excess of 70000 MW. Thus, the total
electricity generation potential from biomass could reach a figure of about 20,000
MW.

The technology for generation of electricity from these biomass materials is similar
to the conventional coal-based thermal power generation. The biomass is burnt in
boilers to generate steam, which drives a turbo alternator for generation of
electricity. Biomass, duly processed can be used as a replacement to fossil fuel in
field proven equipment.

RANKINE CYCLE
Biomass Boilers + Steam Turbines

OTHER TECHNOLOGY OPTIONS FOR BIOMASS ENERGY SYSTEMS

OTTO CYCLE
Gas Engines (with upstream Biomass Gasifiers/ Bio-gas Plants)

BRAYTON CYCLE
Gas Turbines (with upstream Bio-Oil Refinery…pyrolysis unit)

Another potential technology is in Direct Carbon Fuel Cells, which have high
electrical efficiency (60-70%).

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Particulars Boiler + Gasifiers Biogas Bio fuels Direct
STG- + Gas Plants + + Diesel Carbon
Power / Engines Gas Engines Fuel Cells
Cogen Engines
Complexity

Unit Size 6,000 650 1000 modules

(KWe) 8,000- 10- 350/ 500 10-8,000 10/25
25,000
Criticality of Medium – High Medium- High High
sizing/ High Low
drying

Fuel Supply Medium – Medium Medium- High Medium

Risks High Low

PLF Medium – Medium High Low (on High

High a/c of cost
of
generation
)

Hence we can only use Boiler + Steam Turbine Generator for 10 MW system.

Advantages
 This project can be designed to match the electric loads as biomass can be
stored and used according to demand.
 Equipment for this project is similar to that for coal-based thermal power
projects and hence, no new technological developments are required.
 Due to its proximity to the rural areas, this project is likely to improve quality
of electricity supply there.
 A variety of biomass materials can be used in the same plant, providing
flexibility of operations.

Technology and equipment

The technology for use of biomass for power generation is fairly well established in
the country. The equipment required for this project comprises mainly of boilers,
turbines, and grid inter-phasing systems. Recent innovations include the use of
air-cooled condensers to reduce consumptive use of water. All these equipment
are available indigenously.

Manufacturing capability exists in the country for the equipment/machinery

required for setting up the Biomass Project. Except for some critical control

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equipment, and high efficiency turbines, most of the equipments can be procured
from indigenous sources.

Almost all combinations – condensing, single extraction/double extraction

condensing, back pressure, etc. are now being offered in the country with full after
sales services guarantees. The efficiencies of turbines now being offered are
comparable to the best in the world.

Apart from the main equipment, there is a well established capability and capacity
for manufacture of related equipment for use of biomass for energy
including harvesters, balers, briquetting equipment, handling and firing equipment,
pollution control systems, etc. Many multinational companies have set up
manufacturing facilities in the country for such equipment

Costs
Typical capital costs for biomass power projects is Rs 5 crores/ MW. Costs of
generation depend upon the cost of biomass, the plant load factor, and the
efficiencies of conversion.

Sale of electricity
1. Purchase of electricity at attractive rates through long-term PPAs with
PSEB,
2. Facilities for wheeling and banking to the third party.

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 FINANCIAL
FINANCIALINCENTIVES
INCENTIVESAVAILABLE
AVAILABLE

Besides the Central Financial Assistance, fiscal incentives such as 80%

accelerated depreciation, concessional import duty, excise duty, tax holiday for 10
years etc., and are available for Biomass power projects. In addition, State
Electricity Regulatory Commissions have determined preferential tariffs and
Renewable Purchase Standards (RPS). Indian Renewable Energy Development
Agency (IREDA) provides loan for setting up biomass based power projects.

Capital subsidy for Biomass Power projects.

Rs 20 lakh X (C MW)^0.646

Fiscal Incentives for Biomass Power Generation

Item Description

Accelerated Depreciation 80% depreciation in the first year can be claimed for
the following equipment required for co-generation
systems:

1. Back pressure, pass-out, controlled extraction,

extraction–cum-condensing turbine for co-
generation with pressure boilers

2. Vapour absorption refrigeration systems

3. Organic rankine cycle power systems

4. Low inlet pressures small steam turbines

Income Tax Holiday Ten years tax holidays.

Customs Duty Concessional customs and excise duty exemption for

machinery and components for initial setting up of
projects.

General Sales Tax Exemption is available.

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(i)
PLANT
PLANTECONOMICS
ECONOMICS
Rated plant capacity = 10,000 X 350 X 24 = 8,40,00,000 kWhr

BASIS
No. of working days = 350 days per annum
No. of shifts = 3 per day
One shift = 8 hours

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 IMPLEMENTATION
IMPLEMENTATIONSCHEDULE
SCHEDULE
PHA ACTIVITY TIME FUNDS REQUIRED
SE REQUIRED IN % OF THE
PROJECT COST

1. COMPANY FORMATION
 Company name approval
 Company incorporation
 Issue of Certificate
 Commencement of business certificate 3 Months 2%

2. PROJECT DEVELOPMENT
 Site selection
 Feasibility study and financial planning
 Detailed Project Report and other
documentation for Loans 6 months 5%

3. DESIGN AND ENGINEERING

 Detailed design and engineering 6 Months 10%

4. CONSTRUCTION AND COMMISSIONING

 Order and supply for the Plant and Machinery
 Civil work
 Organizational planning
 Commissioning of the plant
 Marketing 12 Months 83%

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